THE BUSINESS INNOVATION OF SMALL WINERIES IN SERBIA IN FUNCTION OF IMPROVING BUSINESS PERFORMANCE

Ivana Erić; Nemanja Lekić

Authors

Ivana Erić Business School - Higher Education Institution for Applied Studies, Belgrade
Nemanja Lekić Business School - Higher Education Institution for Applied Studies, Belgrade

Keywords:

Innovations, Small wineries, Sectorial system of innovation, Improving business performance of small wineries in Serbia

Abstract

Innovations have always been regarded as the conditio sine quo non for advancement, growth, development and maintenance of high profitability of the organization. Unfortunately, researches of innovation in small organizations are relatively limited, especially in the traditional sectors, to which belongs and wine industry. The main aim of this paper is to present ways in which small wineries can improve their business position. As a result, this paper will highlight the sectoral system of innovation, which does not only deal with the production companies, but also with the relevant institutions, the different types of interactions and with constant encouragement of learning and gaining practical knowledge. The paper promotes the paradigm of open innovation, which is based on the free flows of the ideas, knowledge and resources between organizations, as the only way for organizations to survive in conditions of ruthless competition. Empirical research was conducted by usingprimary and secondary sources of information, in order to demonstrate that innovation affects business performance of small wineries in Serbia. The main implication of this research is thatthe only way for better business performance of small winerieslays in permanent innovations by applying sectoral system of innovation and paradigm of open innovation.

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